Airlines Warn That Tougher Consumer Protection Rules Could Push Up Ticket Prices

Australia’s peak airline body has raised concerns that proposed aviation consumer protection reforms could inadvertently increase airfares if they prove too complex or costly to implement. In a recent submission to the government, Airlines for Australia and New Zealand (A4ANZ) described the draft Aviation Consumer Protections Charter as “unworkable” and warned that compliance burdens might push up ticket prices for travellers. 

The proposed reforms, part of a broader push by the federal government to strengthen passenger rights and streamline dispute handling, include clearer refund processes, compensation obligations for disruptions and expanded complaint mechanisms. Supporters argue these changes would benefit consumers by improving transparency and accountability from airlines. 

However, airline groups say the cost of meeting these new standards, alongside administrative and operational adjustments, could lead to higher operating costs that would be passed on to passengers through increased fares. Similar concerns have been raised previously by transport officials, including warnings that EU‑style “pay‑on‑delay” compensation schemes could drive up travel costs in Australia.

Debate continues as the government finalises its approach, with consumer advocates and industry stakeholders taking part in consultations to balance stronger rights with economic and pricing considerations in the aviation sector.